Adv Exam #1 Key Terms

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<Chap 1>

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<Chap 1>

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Advertising

Back 2

to promote your product

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Personal selling

Back 3

in which salespeople deal directly with customers either face-to-face or via telemarketing, offers the flexibility possible only through human interaction.

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Marketing

Back 4

the process and activity of planning and creating the conception, pricing, placement, and promotion of goods and/or services that have value for clients and customers.

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Public Relations (PR)

Back 5

company’s relationship with its various publics

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Stern advertising process model

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Source > Encoding > Message > Channel > Decoding > Receiver

"Ex: Nike (source), conveys (encodes) their message and airs it on T.V. (Channel) for the viewer (Receiver) to understand (Decode)"

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Channel

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any way through which an encoded message is sent to a receiver (ex. newspaper, tv, billboard)

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Encode

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translation of an idea or message into words, symbols, and illustrations

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Decode

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receiver decodes message to understand it

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Receiver

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the other party that receives the message (ex: me and you, people)

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Source/sender

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Company/owner of product

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Medium

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an instrument that carries or helps transfer a message from the sender to the receiver

Think of:

"messages communicated to the public using words, speech, and pictures."

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Message

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the information that is sent ex: "buy Kardashian perfume"

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Feedback

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A message that acknowledges or responds to an initial message

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</Chap 1>

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</Chap 1>

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<Chap 2>

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<Chap 2>

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Branding

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constantly branding their logos onto their products to the point where everyone recognizes the logo. Example- Coca Cola

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Branding

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constantly branding their logos onto their products to the point where everyone recognizes the logo. Example- Coca Cola

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De-marketing

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advertising used to slow the demand for their products. Producers of energy and energy-consuming goods used theses ads to get people to refrain from operating washers and dryers during the day when the demand for electricity peaked.

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Market Segmentation

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Advertising to a unique portion of the population based upon a specialized product.

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Positioning Strategy

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How brands rank against the competition in meeting consumer needs, how it is positioned.

Ex: Positioning your product for the right consumer. Offering 99c menu.

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Media Convergence

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Examples:

- MTV coming out and combining radio & TV.

- Newspapers going digital online.

(You can sort of think of it as: combining the old with the new)

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Active Control

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more control in the hands of the consumer, like the Internet

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Two-way communication

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direct communication and feedback between you and company, you and other consumers

Example:

Consumer: "This sucks." Company: "Sorry, you didn't enjoy it we'll attempt to fix it."

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Synchronicity

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"Perceived meaningful coincidence."

Example:

You might encounter a reference to some obscure event in history for the first time and then see several unrelated references to the same event soon afterwards.

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</Chap 2>

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</Chap 2>

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<Chap 3>

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<Chap 3>

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Subliminal advertising

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an advertiser has affected product sales with a hidden message embedded in a commercial

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deceptive advertising

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any ad that contains a misrepresentation, omission, or other practice that can mislead a significant number of reasonable consumers to their detriment.

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unfair advertising

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the inadequacy of complete information. For example, claims that exploit vulnerable groups such as children and the elderly

Or you can think of it:

when sellers coerce consumers into purchasing unwanted goods or services

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comparative advertising

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Advertisers use comparative advertising to claim superiority to competitors in some aspect. In the United States, such ads are legal (and encouraged by the FTC) so long as the comparison is truthful.

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bait advertising

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Advertising offers products or services for sale that doesn’t stand and is a device to switch consumers to other goods or services, usually higher priced.

Example: Best buy: "50 inch. TVs $50 While supplies last"

Best Buy: "Sorry we only had one of those, but we have a 50 inch. TV here for $599"

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consent decree

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is a document the advertiser signs agreeing to stop the objectionable advertising without admitting any wrongdoing.

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cease-and-desist order

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If an advertiser won’t sign a consent decree, the FTC may issue a cease-and-desist order prohibiting further use of the ad.
Think of:

(issue prohibiting further advertising of the product.)

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corrective advertising

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The FTC may also require corrective advertising for some period of time to explain and correct offending ads.

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</Chap 3>

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</Chap 3>

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<Chap 4>

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<Chap 4>

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Decentralized system

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the company sets up separate ad departments for different divisions, subsidiaries, regions, brands, or other groups.

Example: Johnson & Johnson (They sell tylenol, listerine, baby care products, etc. A lot to offer)

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Centralized system

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single ad department, offering greater control and less go betweens

Example: Southwest airline (Only one service to offer)

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In-house agency

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agency wholly owned by an advertiser and set up and staffed to do all the work of an independent full-service agency.

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Full service advertising agency

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An agency equipped to serve its clients in all areas of communication and promotion.

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Advertisers (clients)

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pay agencies to create advertisements

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Agencies

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helps the advertisers plan, create, and prepare ad campaigns and other promotional materials.

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Media

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Plural for medium (Medium = an instrument that carries or helps transfer a message from the sender to the receiver)

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Suppliers

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People and organizations that assist both advertisers and agencies in the preparation of advertising materials. Such as: photography, illustration, printing, and production

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</Chap 4>

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</Chap 4>

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<Chap 5>

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<Chap 5>

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Central route

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High willingness to elaborate a message

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Cognition

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comprehending the stimulus

(Noun. The mental action or process of acquiring knowledge and understanding through thought, experience, and the senses.)

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Cognitive Theory

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- Learning theories rely on modeling behaviours. Comes into play especially if you have never used the product before. OR when making complex purchases (You only know what you’ve seen in the media or what your parents have told you.)

- We learn from others how to do things.

- Complex purchase (Ie: Car)

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Conditioning Theory

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The theory that learning is a trial-and-error process. Also called stimulus-response theory.

Example: Trial and error process, Go and buy what’s cool and see if you like it.

- This comes from direct experience.

- Simple purchase (ie: Detergent.)

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Elaboration Likelihood Model

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Source, message, channel > Attetion and comprehention >(Two routes from here...)

->High involvement > Cognitive response > Believe & Attitude change & Behaviour Change.

-> Low involvement > belief change > behaviour change > attitude change

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Persuasion

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A change in belief, attitude, or behavioral intention caused by a message (such as advertising or personal selling)

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Personal processes

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It involves a sequence of activities: problem recognition (which may

occur as a result of seeing an ad), information search, evaluation and selection, store choice and purchase, and finally post-purchase behavior.

How YOU, the consumer, process it.

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Peripheral route

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People who are not in the market for a product have no reason to pay attention to ad, however, these consumers might attend to some peripheral aspects and at some later date, if a purchase occasion does arise and the consumer needs to make some brand evaluation, these ad-related meanings could be activated.

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Physiological Screens

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The perceptual screens that use the five senses- sight, hearing, touch, taste, and smell- to detect incoming data and measure the dimension and intensity of the physical stimulus.

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Psychological Screens

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(...Comes after physiological screens...) The perceptual screens consumers use to evaluate, filter, and personalize information according to subjective standards, primarily emotions and personality.

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Stimulus-response theory

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Also called conditioning theory. IMC messages are external stimuli that can appear in a variety of forms: a window display at a local department store, the brightly colored labels on cans of Campbell’s tomato soup, or even the red price tag. These objects are all physical in nature; they stimulate our senses in ways that can be measured

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Cognitive Dissonance

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Justifying their behavior by reducing the dissonance, or inconsistency, between their cognition and reality. “Thinking about if your product is the best after you buy”

Ex: Prof saying he hated his friend's jeep.

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</Chap 5>

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</Chap 5>

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<Chap 6 *phew* almost done>

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<Chap 6 *phew* almost done>

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Behavioristic segmentation

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Method of determining market segments by grouping consumers into groups based on their purchase behavior

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Brand equity

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The totality of what consumer, distributors, dealers, and competitors feel and think about a brand over an extended period of time; in short, it is the value of the brand’s capital.

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Demographic segmentation

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Based on a population’s statistical characteristics such as sex, age, ethnicity, education, occupation, etc.

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Geographic segmentation

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A methods of segmenting markets by geographic regions based on the shared characteristics, needs, or wants of people within the region.

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Marketing mix

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Four elements (4P’s) ***Product, price, promotion, & placement*** that every company has the option of adding, subtracting, or modifying in order to create a desired marketing strategy.

Right product sold at right place, right time, with the right promotion.

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Psychographic Segmentation

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Method of defining consumer markets based on psychological variables including values, attitudes, personality, and lifestyle

(Who we are as individuals)

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Psychographics

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The grouping of consumers into market segments on the basis of psychological makeup- values, attitudes, personality, and lifestyle

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Intensive Distribution

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A distribution strategy based on making the product HEAVILY/READILY available to consumers at every possible location so that consumers can buy with a minimum effort.

EX: Coke-a-Cola is Intensively distributed

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Selective Distribution

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Strategy of limiting the distribution of a product to select outlets in order to reduce distribution and promotion costs.

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Hidden differences

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not readily apparent (can’t tell difference)

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Induced differences

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packaging is different but product is the same

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Perceptible Differences

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obviously unique

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</Chap 6 DONE>

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</Chap 6 DONE>